DCB Corporate banking deals with large customers (customers with monthly turnovers in excess of TZS. 100 million) as well as medium size customers with turnovers between TZS. 50-100 million.

Corporate Assets

• Overdraft facility

• Equipment/Investment loan

• Local guarantees and indemnities

• Letters of credit (L/C)

Corporate liability

• Current Accounts (in local currency, USD, Euro & Sterling Pounds)

• FDR – 1 month to 12 months

Overdraft Facility

This is a credit facility where a client is allowed to overdraw a current account up to a certain set limit with deposits being made to the account on a regular basis. It is granted to finance working capital requirements, granted for a maximum duration of one year, renewable yearly provided certain minimum requirements are met.

Equipment/Investment Loans

Investment /equipment loans are medium term loans with regular repayments. The purpose of investment/equipment loan is to provide partial finance of the purchase of productive equipment

Features

• Loan Amount TZS. 500,000 – TZS. 200,000,000

• There is no application fee

• Commitment fee 2%

• Minimum balance in account required is 20% of applied loan

• Turn around time 3 working days

• Interest rate 21% (flat) p.a

• Monthly repayment

• Repayment Period of 36 months

• Insurance rate 1%

• Grace period Up to three months on case -by -case basis

Requirements

• Equipment to be purchased forms party of security

• Additional security will cover at least 100% of the loan amount.

• Total value of equipment plus securities shall cover 150% of the loan amount.

• Have a minimum of 1-year experience as an owner/manager of the business to be financed.

• Have necessary technical skills and experience to operate the equipment to be financed

• Contribute at least 25% IN CASH towards the purchase of the equipment;

• The life expectancy of the equipment to be financed shall be at least equal to the loan period;

• Be in possession of a savings or current account.  In case of liquidity shortages or other operational capacity constraints, preference shall be given to those clients who have operated an account for three months or more;

• Not to have another outstanding loan facility at DCB.  In certain cases, subject to approval by the Head Office Credit Committee, business loans can be advanced in addition to an outstanding investment loan.